Firm size and taxes

The scale dependence in firm growth (smaller firms grow faster) is systematically reflected in the size distribution. This paper studies whether taxes affect the equilibrium firm size distribution in a cross-country context. The main finding is that the empirical association between firm growth and corporate tax (VAT) is positive (negative), with notable differences in the response of manufacturing firms and that of the others. We draw implications for recent debate on the impact of taxes and tax avoidance on the organization of firms in the economy

What Determines Firm Size?

Motivated by theories of the firm, which we classify as technological' or organizational,' we analyze the determinants of firm size across industries and across countries in a sample of 15 European countries. We find that, on average, firms facing larger markets are larger. At the industry level, we find firms in the utility sector are large, perhaps because they enjoy a natural, or officially sanctioned, monopoly. Capital intensive industries, high wage industries, and industries that do a lot of R&D have larger firms, as do industries that require little external financing. At the country level, the most salient findings are that countries with efficient judicial systems have larger firms, and, correcting for institutional development, there is little evidence that richer countries have larger firms. Interestingly, institutional development, such as greater judicial efficiency, seems to be correlated with lower dispersion in firm size within an industry. The effects of interactions (between an industry's characteristics and a country's environment) on size are perhaps the most novel results in the paper, and are best able to discriminate between theories. As the judicial system improves, the difference in size between firms in capital intensive industries and firms in industries that use little physical capital diminishes, a finding consistent with size of firms in industries dependent on external finance is larger in countries with better financial markets, suggesting that financial constraints limit average firm size.

FIRM SIZE AND MONITORING

We present a model of optimal monitoring expenditures. For any technology that yields a conventional ``S-shaped''' production function for monitoring, the optimal level of monitoring is shown to be higher in medium-sized firms than in both small and large firms. Further, the interaction between specialization and agency are shown to lead to an ``S-shaped'''' production function.

Determinants of firm-size

Overzicht van theoretische factoren die belangrijk zijn bij het verklaren van schaalgrootte van bedrijven en verschillen in schaalgrootte tussen vergelijkbare bedrijven. Naast de theoretische factoren worden enkele relevante trends beschreven en wordt gekeken naar de impact van deze trends op de mechanismen die schaalgrootte beïnvloeden. Terwijl het aantal overnames en fusies de laatste jaren sterk is toegenomen, is ook het aantal startende bedrijven sterk gegroeid. Per saldo is het gemiddelde bedrijf in Nederland licht in omvang afgenomen. De mechanismen die schaalgrootte en verdeling van schaalgrootte beïnvloeden, zijn bekeken op het niveau van de bedrijven zelf en op het niveau van sectoren. Bij het bedrijfsniveau gaat het bijvoorbeeld om schaal- en scopevoordelen, transactiekosten, ?agency-costs? en de levenscyclus van bedrijven. Mechanismen die belangrijk zijn op het niveau van sectoren of clusters zijn bijvoorbeeld externe schaal- en scope-effecten en netwerkeffecten. Overigens is er veel overlap tussen al deze mechanismen. Trends die belangrijk zijn voor schaalgrootte zijn met name globalisering, technologische ontwikkeling en deregulering.

Firm Size and Productivity

This paper examines the relationship between firm size and productivity. In contrast to previous studies, this paper offers evidence of the relationship not only from manufacturing firms, but from non-manufacturing firms as well. Furthermore, the aggregate importance of the firm size-productivity relationship is gauged by calculating to what extent shifts in the distribution of employment over firm size categories has affected Canadian aggregate productivity, and whether differences in the employment distribution over firm size categories between Canada and the United States can account for the Canada-U.S. labour productivity gap. The importance of large and small firms to changes in productivity is also examined. A positive relationship between firm size and both labour productivity and TFP is found in both the manufacturing and non-manufacturing sectors. Given this relationship, the difference in the employment distribution over firm sizes between Canada and the United States can account for half of the Canada-U.S. labour productivity gap in manufacturing.Productivity

Analisis Pengaruh Firm Size, Export Ratio, Earning Variability Terhadap Nilai Perusahaan Dengan Eksposur Ekonomi Sebagai Variabel Intervening Pada Sektor Industri Manufaktur Di Bursa Efek Indonesia

Setiap Perusahaan menginginkan nilai Perusahaannya yang tinggi dan dapat menarik perhatian para investor. Untuk meningkatkan nilai sebuah Perusahaan, Perusahaan harus dapat memelihara faktor pendukung dari nilai Perusahaan itu sendiri. Faktor yang dapat meningkatkan nilai Perusahaan adalah sejauh mana Perusahaan dapat memelihara ukuran Perusahaan (firm size), export ratio, earning variability dan eksposur ekonomi. Tujuan penelitian ini adalah untuk mengetahui dan menganalisis pengaruh firm size, export ratio, earning variability terhadap nilai Perusahaan dengan eksposur ekonomi sebagai variabel intervening pada Perusahaan manufaktur di Bursa Efek Indonesia. Penelitian ini merupakan penelitian statistik deskriptif dan sifat penelitian merupakan deskriptif explanatory.Metode pengumpulan data dilakukan melalui studi dokumentasi. Populasi penelitian ini adalah Perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia sebanyak 138 Perusahaan. Dengan menggunakan purposive sampling dengan kedalam kriteria yang telah ditentukan yaitu maka sampel sebanyak 132 Perusahaan. Metode analisis data yang digunakan adalah menggunakan path analisis dengan menggunakan Software SPSS 24. Hasil penelitian substruktur pertama menunjukkan secara parsial earning variability berpengaruh negatif dan signifikan terhadap eksposur ekonomi pada Perusahaan manufaktur di Bursa Efek Indonesia. Hasil penelitian substruktur kedua menunjukkan firm size, export ratio, earning variability dan eksposur ekonomi secara simultan berpengaruh positif dan signifikan terhadap nilai Perusahaan pada Perusahaan manufaktur di Bursa Efek Indonesia dengan koefisien determinasi (R2) sebesar 0,268 atau 26,8%. Secara parsial firm size berpegaruh negatif dan signifikan terhadap nilai Perusahaan sedangkan earning variability berpengaruh positif dan signifikan terhadap nilai Perusahaan pada Perusahaan manufaktur di Bursa Efek Indonesia. Eksposur ekonomi bukan merupakan variabel intervening pengaruh firm size, export ratio, earning variability terhadap nilai Perusahaan

Pengaruh Insider Ownership, Firm Size, Firm Growth, dan Business Risk terhadap Kebijakan Hutang Padaperusahaan Perbankan Go Public di Bursa Efek Indonesia

The purpose of this study was to examine the influence of insider ownership, firm size, firm growth and business risk on debt policy. This study is a replication of the study Murni and Andriana (2007). It is also intended to test the results of previous studies in different contexts. The population in this study is a banking company that is listed on the Indonesia Stock Exchange from 2010 until 2012. From sampling criteria specified, acquired 10 banking companies can be said to be worthy of being a sample of annual reports from 2010 to 2012. Processing of the data in this study using multiple regression analysis models with SPSS 17.0 The results show that insider ownership, firm growth and business risk has no effect on debt policy. Conversely firm size has an influence on debt policy.Keywords: insider ownership, firm size, firm growth, business risk and debt policy

An examination of the relationship between firm size and export activity in the New Zealand lumber industry : a thesis presented in partial fulfilment of the requirements for the degree of Master of Philosophy in Development Studies, Massey University

This thesis explores the relationship between export activity and firm size, with specific reference to New Zealands lumber industry. The main purpose of this investigation is to identify firm characteristics which link firm size to export behavior. This task basically involves exploring the literature to identify possible linking variables and.conducting tests to determine whether or not these characteristics actually link export activity and firm size in New Zealand's lumber industry. · Two major areas of research were drawn upon to produce the hypotheses of this study: determinants of export activity and firm size-related variables in the lumber industry. The former body of literature is well-defined and very extensive. A great deal of empirical research has been done on firm-level export behavior (though unfortunately very little theoretical study has been done to link export behavior back to microeconomics. The second area of research is not very well­ defined. Inferences on the relationship between various characteristics and firm size are drawn from the literature on lumber production in New Zealand. These inferences are supplemented by scattered pieces of research on the linkage between firm size and firm characteristics, as well as by sensible guesses as to how certain characteristics are associated with firm size. Using these two areas of research, hypotheses were drawn as to how firm size and export activity are linked. Based upon these two areas of study then, nine characteristics were identified as possible links between firm size and export activity: proximity to a city, product quality, production cost, legal structure, foreign ownership, managerial experience and education, marketing skill, export­ related information, and managerial attitudes and ambition. It was decided to test these hypotheses by conducting a survey of New Zealand's lumber industry. This particular industry was selected because it was felt that a greater understanding of the export dynamics of this sector would assist policymakers in stimulating New Zealand's economy. In all, 26 lumber mills (out of 40 that were contacted) agreed to participate in the survey. On the whole, it was found that some characteristics do link firm size to export activity. Specifically, legal structure, managerial experience and education, and managerial attitudes and ambition were found to be significantly related to both export activity and firm size. These results suggest that firm size can be indirectly linked to export activity. However, researchers should be aware that the nature of this link could possibly vary with industry, place and time. Hence, using firm size as a predictor of export activity should be avoided until more research is conducted

Firm size related to export performance

Purpose: This paper provides an overview of exporting firms, as a special case SMEs of the Republic of Kosovo, that are exporters based on relevant academic literature. Empirical evidence reveals that most of the SMEs, have positive relations with some determinants as the number of employees. To verify whether exporting is the first step in the process of internationalization, the findings of this study are linked with related literature on exporting aspects. This also offers a more in-depth understanding of the relation between variables used in the study and export performance. Design/Methodology/Approach: The paper used quantitative data and face to face interviews with respondents. The descriptive statistics were calculated to give an overview of the distribution, mean and the standard deviation of the dataset. Internal consistency and reliability analysis on a Likert scale was performed using Cronbach’s Alpha coefficient. Findings: The firm size was shown to be highly statistically significant and positively related, indicating that the importance of economies of scale in the probability of being engaged in export is high. The obtained results from the conducted research on SMEs in Kosovo show that the dependency of managers’ education and training were corresponding with those attained when testing dependency of managers’ age and their international experience. Practical Implications: Development policy should be made towards the added value and growth of competitive competencies of SMEs in the domestic market and the external market, as well the process to take facilitating steps in exporting promotional activities. Agency for supporting SMEs should coordinate activities to improve the conditions for exporting enterprises by allowing access to public infrastructure. Originality/Value: This paper is summarized with some specific recommendations for the management of SMEs and for government institutions to improve export performance.peer-reviewe